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- 🌋El Salvador's Volcanic Crypto Gains,💸Cash Trumps CBDC in China,⛓Africa's First Blockchain-Powered Government
🌋El Salvador's Volcanic Crypto Gains,💸Cash Trumps CBDC in China,⛓Africa's First Blockchain-Powered Government
Your 5 minute emerging markets web3 weekly update
In This Issue
Latin America and the Caribbean
🔸El Salvador Mines $29M in Bitcoin Using Volcano Power, Boosts Holdings to $354M
🔸Blockchain vs. Pix: Central Bank of Brazil's Coordinator Explains the Best Option for Small Remittances
Asia
🔸China CBDC Faces Adoption Challenges as Consumers Prefer Cash, Alipay, and WeChat
🔸Bitcoin Asia in Hong Kong Sees Strong Turnout from Mainland China Amid Crypto Ban
Africa
🔸Ghana to Become Africa's First Blockchain-Powered Government
🔸IMF Recommends Stronger Oversight for Nigeria's Booming Crypto Market
Eastern Europe
🔸Turkey Set to Regulate Crypto Trading Platforms to Exit FATF Gray List
🔸St. Petersburg Stock Exchange Poised to Join Russia's International Crypto Payment Project
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Latin America and the Caribbean
Image Credit: Dall-E 3
El Salvador has mined 474 bitcoins worth $29 million using geothermal energy from the Tecapa volcano, bringing the government's total bitcoin holdings to 5,750, valued at nearly $354 million. The country's Bitcoin Office, which has installed 300 processors for bitcoin mining, reports that 1.5 MW of energy from the state-owned power plant is dedicated to cryptocurrency mining. Despite criticism and scrutiny over the environmental impact, El Salvador continues to use green energy for bitcoin mining, aiming to capitalize on its legal tender status adopted in 2021.
Rafael Bianchini, a coordinator at the Central Bank of Brazil and professor at Fundação Getúlio Vargas, expressed skepticism about blockchain replacing Swift for international transfers, advocating for an international Pix system for small remittances due to its simplicity and cost-effectiveness. Pix is a payment method developed by the Central Bank of Brazil that enables transactions to occur in less than 10 seconds, 24 hours a day, 7 days a week, 365 days a year. He noted that Pix's ISO 20.022 messaging standard ensures interoperability and low-cost transactions, but highlighted budget constraints and integration difficulties with central banks as challenges. Bianchini suggests that while Swift is currently efficient but expensive, blockchain technology would be better suited for wholesale interbank transfers, while Pix remains ideal for retail use.
Want more Latin America and Caribbean news?
•Latin America, a fertile ground for the daily use of bitcoin (Spanish)
•El Salvador Launches Website to Track $360 Million Bitcoin Treasury
•Sebastián Serrano, CEO of Ripio: “Bitcoin always grows, digit by digit” (Spanish)
•Lima will host the Peru Blockchain Conference 2024 (Spanish)
•Hilton Hotel in El Salvador offers the country's first tokenized investment (Spanish)
Asia
Image Credit: Dall-E 3
China is piloting the use of its digital yuan (e-CNY) CBDC to pay state employees, with many workers converting it to cash due to limited acceptance and lack of interest accrual. As China continues to expand the use of e-CNY, over 15 million new wallets were opened last year, with the currency being accepted by more than 2.7 million shops, and used for public services such as tax and social security payments. However, privacy concerns and the dominance of Alipay and WeChat Pay hinder wider adoption, despite assurances from authorities about "controllable anonymity" for smaller transactions and traceability for larger ones. The digital yuan aims to enhance transparency and combat corruption, but faces challenges in replacing well-established payment systems.
The Bitcoin Asia conference in Hong Kong attracted around 5,500 attendees, with significant participation from mainland China, highlighting the region's growing interest in blockchain and cryptocurrency due to Hong Kong’s new bitcoin and ether ETFs and the development of layer 2 projects. The event highlighted Hong Kong's supportive policies for the cryptocurrency industry, potentially positioning the city as a conduit for Chinese investors despite the mainland's crypto trading ban. Conference organizers are optimistic about Hong Kong's future role in the crypto ecosystem and are considering the city for future events alongside Tokyo and Singapore.
Want more Asia news?
•Exclusive: North Korea laundered $147.5 mln in stolen crypto in March, say UN experts
•Regulated crypto firm Coins.ph debuts Philippines stablecoin in sandbox
•Indian Crypto Exchange CoinDCX’s DeFi Arm Okto to Launch Blockchain and OKTO Token
•Deutsche Bank joins Singapore's Project Guardian tokenization initiative
•U.S. Blocks China-Tied Crypto Miners as 'National Security Risk' Near Nuke Base
Africa
Image Credit: Dall-E 3
Ghana's Vice President, Mahamudu Bawumia, announced plans to integrate blockchain technology into government operations, aiming to make Ghana the first blockchain-powered government in Africa. This initiative aims to enhance transparency and combat corruption, potentially recovering billions lost to poor governance and lack of accountability. Speaking at the 14th Regional Conference of Heads of Anti-Corruption Agencies in Commonwealth Africa, Bawumia highlighted the importance of anti-corruption agencies investing in digital forensics and blockchain to effectively track and disrupt corruption networks across Africa. He also emphasized the importance of digitalization initiatives like the Ghana Card, which has already saved millions by eliminating fraudulent pension and payroll entries.
The International Monetary Fund (IMF) has recommended that global crypto trading platforms in Nigeria be registered or licensed and subject to the same regulatory requirements as financial intermediaries to ensure financial stability. The IMF also urged Nigerian authorities to strengthen anti-money laundering and combating the financing of terrorism controls on these platforms, emphasizing risk-based supervision. Nigerian officials acknowledged the pressure on the exchange rate from illicit cryptocurrency flows and highlighted recent reforms aimed at attracting foreign exchange liquidity to stabilize the market.
Want more Africa news?
•KuCoin discontinues naira-based P2P trading as Nigeria clampdowns on crypto exchanges
•NFTs | Ghana’s Postal Service Launches Inaugural Crypto Stamp to Mark Monarch’s Coronation
•Mutual settlements: how Africa became a leader in the use of cryptocurrency (Russian)
•Zimbabwe Government Establishes National Risk Assessment Coordination Committee for Cryptocurrency
Eastern Europe
Image Credit: Dall-E 3
Turkey is finalizing a new cryptocurrency regulation to mitigate transaction risks and align with international standards. Chaired by AK Party’s Abdullah Güler, the draft law will be submitted to Parliament and aims to license and supervise trading platforms under the Capital Markets Board (SPK), improving platform operations and compliance. This regulation is expected to help Turkey exit the Financial Action Task Force's (FATF) "gray list."
The St. Petersburg Stock Exchange is ready to join the Bank of Russia's cryptocurrency project for international settlements pending legislative approval, according to general director Evgeny Serdyukov. The Bank of Russia may begin creating an experimental platform for using cryptocurrencies in international payments starting September 1, coordinating with Rosfinmonitoring, the Ministry of Finance, and the FSB. The Exchange supports digital financial assets (DFAs) trading and is seeking legislative changes to trade DFAs like traditional securities to enhance access for private investors.
Want more Eastern Europe news?
•Take it out of the shadows: in Russia the Government want to tighten control over mining - How the Government proposes to identify violators and what fines they may face (Russian)
•Russians made up a quarter of all Bybit exchange traffic in April (Russian)
•Nabiullina sees great potential in the development of the DFA market (Russian)
•In Ukraine, the list of dubious projects has been replenished with miners and crypto traders (Russian)
•Rostec intends to use the digital ruble during its implementation in 2025 (Russian)
Thanks for reading and have a great week ahead!
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